Needham & Company Downgrades RightNow Technologies (RNOW) to Hold; Strength of Trends Already in Shares

Needham & Company downgraded RightNow Technologies (NASDAQ: RNOW) from Buy to Hold.

Needham analyst says, "While we acknowledge the strength of fundamentals which could be highlighted at upcoming events (user conference and Q3 report), we’re still downgrading our rating on RNOW shares to Hold to reflect primarily valuation but also suggestions of increased competition from salesforce.com in 2012 and beyond."

"Our downgrade should not be interpreted as a call on the quarter, but should be instead be construed as a view that there are other SaaS names in our universe where risk/reward profiles are more compelling. RNOW shares, up 55% YTD (vs. NASDAQ down 2%), are trading at 5.5x EV/2011Rev (which represents a peak multiple over the past 5 yrs)."

For more ratings news on RightNow Technologies click here and for the rating history of RightNow Technologies click here.

Shares of RightNow Technologies closed at $36.74 yesterday.

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